Consumer spending drives up US growth

Consumer spending rose by 4 per cent in the fourth quarter of last year, the US commerce department saidEDUARDO MUNOZ ALVAREZ/GETTY IMAGES

An unexpected jump in consumer spending helped the US economy to expand more than was thought at the end of last year, boosting President Trump’s ambition to achieve the fastest growth in decades.

Gross domestic product grew by 2.9 per cent annualised in the last three months of 2017, the US Department of Commerce said yesterday, which was faster than its previous estimate of 2.5 per cent and better than the 2.7 per cent forecast by economists.

GDP represents the amount of money that an economy generates over a period and its growth is an important indicator of the economy’s health. The US is the world’s largest economy and its performance sets a precedent for its trading partners and other nations.

Mr Trump is relying…

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